With socialism you also get Germany, which last time I checked is still the Nr. 1 economy of Europe with one of the highest standards of living, healthcare, education and technology you can find on the planet. Which is a direct result of Germany's socialist capitalist free market model.
Greece on the other hand, is not a failed state because of socialism but because of total and utter corruption and mismanagement, corruption that goes down to the lowest citizen. And secondly, because of a living standard that they took for granted thanks to the EU, that they could never actually support by their own economic power. The same is true for Spain, Italy, Ireland and Portugal while others did not mismanage and did not live over their level and are now in a great growth situation, or at least no recession.
Also America was the greatest power in the world.. in cold war. Now that label fits only for China. The only reason China is currently not completely dominating everything is a internal self-centered government where the political class rather wants to keep to power at all costs than do anything externally.
Your super awesome army obviously doesn't help pay the bills. In fact the army is the greatest and most wasteful state employee there is, so one wonders how you call that free market - the government is paying soldiers, and the government pays for military tech, not the free market. The military industrial complex that is the sole reason for your strong military is the exact thing you are arguing against.